Draft ‘Farage clause’ would ensure EU not out of pocket if Reform UK wins election

The EU is reportedly seeking a "Farage clause" in its post-Brexit trade agreement with the UK, ensuring compensation if either party withdraws from the deal. This clause, included in a draft agreement on agriculture trade, would require the withdrawing party to cover the costs of reinstating border and infrastructure controls. EU diplomats see this as a safeguard against a future Reform UK government potentially cancelling the agreement. UK sources claim the clause is routine in international deals and works both ways. Negotiations on the SPS deal are expected to begin this month, covering agriculture trade, carbon emissions, and the Erasmus program. The EU established a €5.4bn fund in 2020 to help member states cope with the disruption caused by Brexit.

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